The post Institutional capital fuels crypto rally amid profit-taking trends — Bitfinex appeared on BitcoinEthereumNews.com.

The crypto market reached a new all-time high of nearly $3.5 trillion, with Bitcoin (BTC) leading the charge due to a rapid influx of institutional capital. Additionally, the market share of altcoins excluding Ethereum (ETH), known as Total 3, reached its highest level in over three years. According to a recent report by Bitfinex, capital inflows since the pre-election low of $66,880 just 20 days ago are unparalleled, driving Bitcoin to consistent all-time highs. BTC peaked at $99,334 before a slight correction settled it at $95,611 over the weekend. Despite profit-taking by long-term holders, Bitcoin’s ability to maintain its upward trajectory is supported by demand from new investors, mainly through exchange-traded funds (ETFs).  In the past week alone, net inflows into US spot Bitcoin ETFs have exceeded $3.35 billion.  However, as institutional trading typically pauses over the weekend, the market saw a price drop due to a mismatch between supply and demand. As Bitcoin approaches the significant $100,000 mark, monitoring daily ETF inflows is essential, as any slowdown could indicate waning interest at these high price levels and potentially signal a larger correction.   Furthermore, the broader altcoin market, represented by the Total3 Index (excluding Bitcoin and Ethereum), also hit new cycle highs, increasing by 23.2% — wthe most significant move since April 2021.  This surge indicates growing investor interest in altcoins, potentially driven by market sentiment and evolving regulatory developments.  Large-cap altcoins like Solana (SOL) have achieved new all-time highs, outperforming Bitcoin on significant timeframes and marking the onset of what is commonly referred to as “alt season,” a period when altcoins display substantial upward movements. Countering sell pressure This fresh institutional demand has been crucial in absorbing selling pressure.  Historically, when Bitcoin reaches new all-time highs in a halving year, long-term holder (LTH) wallets — typically accumulating during bear…

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Filed under: News - @ November 25, 2024 8:19 pm